Magellan AerospaceMALJF +7.14%74 Gross Margin % is 14.24% as of Mar. 2026, which is 6% above its 10-year median of 13.41. GuruFocus rates MALJF with a GF Score™ of 74/100 and a GF Value™ of $8.37 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 342 Aerospace & Defense companies, Magellan Aerospace ranks worse than 79.53% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Magellan Aerospace had a gross margin of 14.24% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Magellan Aerospace Gross Margin % Related Terms
Magellan Aerospace Gross Margin % Historical Data
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The historical data trend for Magellan Aerospace's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Aerospace & Defense subindustry, Magellan Aerospace's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Magellan Aerospace Gross Margin % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Magellan Aerospace's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Magellan Aerospace's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Magellan Aerospace (MALJF) has a Gross Margin % of 14.24% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Magellan Aerospace and its competitors. This is near median its historical median of 13.41. Over the past decade, Magellan Aerospace's Gross Margin % has ranged from 4.59 to 18.08. According to the industry distribution chart, Magellan Aerospace ranks #272 out of 342 companies in the Aerospace & Defense industry, placing it in the top 79.5%.
Is Magellan Aerospace's Gross Margin % too high?
Magellan Aerospace's current Gross Margin % of 14.24% is near median its 10-year median of 13.41. Over the past 10 years, this metric has ranged from a low of 4.59 to a high of 18.08. The Aerospace & Defense industry median Gross Margin % is 26.65. Magellan Aerospace's value of 14.24% is 46.6% below this industry median. Based on the distribution chart, Magellan Aerospace ranks #272 out of 342 companies in the Aerospace & Defense industry, which is in the bottom quartile relative to peers. Overall, Magellan Aerospace has a GF Score™ of 74/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Magellan Aerospace's Gross Margin % compare to GE and RTX?
According to the Aerospace & Defense industry distribution chart, Magellan Aerospace ranks #272 out of 342 companies for Gross Margin %. This places Magellan Aerospace in the lower half of its industry. The industry median Gross Margin % is 26.65. Magellan Aerospace's value of 14.24% is 46.6% below this benchmark. Historically, Magellan Aerospace's own Gross Margin % has ranged from 4.59 to 18.08 over the past decade. While the company's 10-year median is 13.41 vs. the industry median of 26.65, Magellan Aerospace has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for an Aerospace & Defense company?
The median Gross Margin % among Aerospace & Defense companies is 26.65, based on 342 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Magellan Aerospace's current Gross Margin % of 14.24% is 46.6% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Magellan Aerospace and its competitors. For the Aerospace & Defense industry, the median Gross Margin % is 26.65 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Magellan Aerospace's current Gross Margin % is 14.24%, which is near median its own 10-year median of 13.41. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Magellan Aerospace stock overvalued right now?
Based on GuruFocus' analysis, Magellan Aerospace (MALJF) is currently considered Significantly Overvalued. The stock's GF Value™ is $8.37, compared to a current price of $22.51 — trading 168.9% above its estimated fair value. The current Gross Margin % is 14.24%, which is near median its 10-year median of 13.41 and 46.6% below the Aerospace & Defense industry median of 26.65. Magellan Aerospace's overall GF Score™ is 74/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Magellan Aerospace (MALJF), the current Gross Margin % is 14.24% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Magellan Aerospace (MALJF) Overvalued in 2026?
Based on GuruFocus' analysis, Magellan Aerospace stock appears to be overvalued.
The current stock price of $22.51 is trading 168.9% above its estimated GF Value™ of $8.37.
GuruFocus considers Magellan Aerospace to be Significantly Overvalued.
Key valuation signals for MALJF:
Gross Margin %: 14.24% (near median its 10-year median of 13.41)
GF Value™: $8.37 vs. price of $22.51 (168.9% above fair value)
Industry Position: 46.6% below the Aerospace & Defense median (#272 of 342)
No single metric tells the full story. See the MALJF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Magellan Aerospace Corp supplies components to the aerospace industry. Through its subsidiaries, it engineers and manufactures aero-engine and aerostructure components for aerospace markets, including products for defense and space markets, and complementary specialty products. Some of its product offerings include honeycomb and filament-wound tubes, frames, compressor components, bypass ducts, black brant rockets, and helicopter power transmission housings, among others. The group also supports the aftermarket through the supply of spare parts as well as through repair and overhaul services. It operates activities in one reportable segment, namely Aerospace. Geographically, the group derives its maximum revenue from Canada, followed by the United States and Europe.
74GF Score
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